KPMG Plans Job Cuts as Consulting Industry Faces Pressure
KPMG is planning to reduce its workforce in the United Kingdom, with hundreds of jobs at risk. Reports suggest that nearly 600 employees in the company’s audit division have been informed that their roles may be affected.
According to internal communication, the final number of layoffs could reach around 440 employees. The decision will depend on the outcome of a formal consultation process, which is currently underway. The potential job cuts represent about 6% of KPMG’s audit workforce in the UK, which has around 7,100 employees.
The layoffs are expected to mainly impact assistant managers who are qualified accountants. These roles form a key part of the audit team, but changing business conditions have reduced the need for such positions. The company said that lower employee turnover in certain departments has created an imbalance, leading to the need to “right-size” its workforce.
KPMG has stated that the decision has not been taken lightly. The firm pointed to current market conditions and slower growth in demand for audit services as key reasons behind the move.
The trend is not limited to KPMG. Other major consulting firms are also considering similar steps. McKinsey & Company has discussed possible job cuts in non-client-facing roles, which could impact about 10% of its workforce over time. Meanwhile, PricewaterhouseCoopers has warned employees to adopt artificial intelligence tools or risk being replaced.
Experts believe that the consulting industry is undergoing a major shift. The rise of artificial intelligence is changing how work is done, especially in areas like accounting, data analysis, and research. As companies adjust to these changes, more job cuts may follow.
Overall, KPMG’s move reflects a broader trend of cost control and transformation in the consulting sector.
